Spouse sets up Bene IRA instead of rolling over
Does a spouse (like a child) have to start RMDs in year following death based on life expectancy? Or can they wait till the deceased spouse would have turned 70 1/2. Terry
Does a spouse (like a child) have to start RMDs in year following death based on life expectancy? Or can they wait till the deceased spouse would have turned 70 1/2. Terry
Permalink Submitted by Alan Spross on Thu, 2011-07-21 18:28
A sole spousal beneficiary is not required to begin RMDs until the year the deceased spouse would have reached 70.5.
Permalink Submitted by Al Fry on Thu, 2011-07-21 18:36
And of course one advantage of the Bene RA is penalty-free withdrawals by an under age 59.5 spouse.
Permalink Submitted by Alan Spross on Thu, 2011-07-21 19:50
To further clarify the options of the surviving spouse, the spouse can still defer RMDs until the year the deceased spouse would have been 70.5 EVEN IF the surviving spouse was NOT the sole IRA beneficiary at the time of owner’s death. Under the separate account rules, if the surviving spouse creates a separate account by 12/31 of the year following the year of death, they are deemed to be the sole beneficiary for RMD purposes even though they were one of multiple beneficiaries when the owner passed.
But once the separate account deadline passes and there are still multiple beneficiaries, the surviving spouse cannot delay RMDs until deceased spouse would have been 70.5.